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State market borrowings down 23.7% YoY in Q1FY23 on strong cash flows

Icra said a comfortable cash flow position of the state governments was due to a back-ended release of tax devolution to the states in FY2022

Tamil Nadu has borrowed close to a massive Rs 40,000 crore in four-and-a-half months, compared to Rs 17,000 crore last year
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The weighted average cut-off of SDLs rose by four basis points to 7.88 per cent today from 7.85 per cent in the last auction, amidst stable weighted average tenor at 15 years.

Abhijit Lele Mumbai
Market borrowing by states and union territories (UT) using development loans declined 23.7 per cent year-on-year (YoY) basis to Rs 1,102 billion (Rs 1.1 trillion) in the first quarter ending June 2022 (Q1 of FY23).

According to rating agency Icra, states and UTs raised Rs 1.44 trillion in April-June 2021 (Q1 of FY22). The mop-up was 42 per cent lower than the indicated Rs 1.902 trillion in the borrowing calendar, reflecting a comfortable cash flow position.

Icra said a comfortable cash flow position of the state governments was due to a back-ended release of tax devolution to the states in

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First Published: Jun 28 2022 | 9:28 PM IST

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